Ask Terry Questions Retirement and IRRMA

Retirement and IRRMA

By Terry Savage on January 07, 2024 | Taxes & Economy

I have $35000 in interest from savings bonds that matured. I didn’t realize they were going to mature and now they are going to put me in a new tax bracket and I’ll be affected by IRMMA in 2026. Where do you recommend I put that excess money. I don’t really need it for day to day expenses. I am 75 years old and single. Apparently I planned too well for retirement.

Terry Says

Well, congratulations on having “too much income” which will increase your Medicare Part B and D premiums. If the bonds have matured,but you haven’t cashed them in, you might try cashing them in over a period of two years, or three. Yes, they are supposed to be cashed in “at maturity” –but many have used this tactic to spread out receipt of the income.

Here’s a link to the Medicare explanation of the 2024 income limits for IRMAA – -the levels at which premiums increase, depending on your marital status:

And if it’s too late, and you cashed the bonds at and will receive a 1099 for all that interest, it’s only one huge year. And they generally look back at only two years. So you can apply for relief if your income comes back down this year.
Use this link:

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